Correlation Between Nancal Energy and Guangzhou Seagull
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By analyzing existing cross correlation between Nancal Energy Saving Tech and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Nancal Energy and Guangzhou Seagull and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nancal Energy with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nancal Energy and Guangzhou Seagull.
Diversification Opportunities for Nancal Energy and Guangzhou Seagull
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nancal and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nancal Energy Saving Tech and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Nancal Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nancal Energy Saving Tech are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Nancal Energy i.e., Nancal Energy and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Nancal Energy and Guangzhou Seagull
Assuming the 90 days trading horizon Nancal Energy Saving Tech is expected to generate 2.33 times more return on investment than Guangzhou Seagull. However, Nancal Energy is 2.33 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.39 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.21 per unit of risk. If you would invest 1,976 in Nancal Energy Saving Tech on August 24, 2024 and sell it today you would earn a total of 1,220 from holding Nancal Energy Saving Tech or generate 61.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nancal Energy Saving Tech vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Nancal Energy Saving |
| Guangzhou Seagull Kitchen |
Nancal Energy and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nancal Energy and Guangzhou Seagull
The main advantage of trading using opposite Nancal Energy and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nancal Energy position performs unexpectedly, Guangzhou Seagull can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Nancal Energy vs. Chengdu Kanghua Biological | Nancal Energy vs. Beijing Wantai Biological | Nancal Energy vs. Suzhou Novoprotein Scientific | Nancal Energy vs. Aluminum Corp of |
| Guangzhou Seagull vs. Chengdu Kanghua Biological | Guangzhou Seagull vs. Beijing Wantai Biological | Guangzhou Seagull vs. Suzhou Novoprotein Scientific | Guangzhou Seagull vs. Aluminum Corp of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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